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Your correct that Yahoo card uses two cycle billing. The Yahoo card is backed by First USA. It really is a FIRST USA card with a Yahoo name on it, effectively.

I have talked with First USA specifically about 2 cycle billing and its not exactly the way you describe or what was conved to me by First USA.

a couple of points might illustrate my understanding of it:

1. First if you pay your balance off each month 2 cycle Billing is a moot point.

2. The FIRST time you dont pay your balance off and carry over a balance to another month. Instead of only paying intrest on the remaining balance for that 25 day period - (normal one cycle billing). In two cycle billing they add the Intrest that would normally accure for that month PLUS and addition Intrest accured on the unpaid balance for the Initial 25 day grace period. In short they charge you in intrest on the unpaid balance for every day now instead of giving you the 25 day grace period if you dont pay it off in full by the end of that Grace Period.

3. This only applies if you go from a zero blance to carrying a balance.

4. If you continue to carry a balance (like many of us) 2-cycle billing is a moot point also and your charged intrest on the unpaid portion plus any new purchases for only that one cycle (one month).

5. Intersting point I realized today was that the 20-25 day grace period ONLY applies to ppl who pay their bills in full each month. That is any new purchase from a zero balance. Any purchase from a cardholder that carries a balance is charged intrest once the charge posts on their account and is computed with the Average Daily Balance.

A few other points about the Yahoo card that ppl should be wary about.

1. The intrest my be 9.99%, if your late 2 times in a 6 month period that gets jacked up to 19.99% and that is FOR LIFE of the account.

2. Some hefty fees to $28 for both late fees and Over the limit fees.

Hope this helps clear some facts.

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